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Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit is $1.84, and fixed costs are $6,500,000, giving your

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Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit is $1.84, and fixed costs are $6,500,000, giving your firm a DOL of 1.6771. The firm faces a tax rate of 40 percent and has 900,000 shares outstanding. Sales are expected to increase by 16 percent during the coming year. Given this information, and assuming that there will be no change in total assets or the number of shares outstanding, calculate the expected EPS for the coming year. $8.56 $8.33 $8.44 $8.22 $8.12

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